August 8, 2008
FERC Approves ITC Midwest Cost Allocation Proposal for Transmission Network Upgrades for Generator Interconnections
CEDAR RAPIDS, Iowa, Aug. 8 /PRNewswire-FirstCall/ -- In a decision that will reduce impediments for wind energy development in Iowa and Minnesota, the Federal Energy Regulatory Commission (FERC) has approved a cost allocation proposal from ITC Midwest LLC (ITC Midwest) for connecting generators to the electric grid. The decision makes it easier and reduces a cost barrier for generators -- including wind energy developers -- to connect to the high- voltage electric transmission system operated by ITC Midwest in Iowa and Minnesota.
In a joint application made with the Midwest Independent Transmission System Operator, Inc. (Midwest ISO) on April 4, 2008, ITC Midwest proposed that it provide 100 percent repayment to generators for the network upgrades needed to reliably interconnect the generators to the ITC Midwest transmission system. Connection to the grid is necessary for generators to sell energy to customers located on the system. Previously, generators interconnecting to the ITC Midwest system were required to ultimately bear half the costs of most network upgrades along with other costs of interconnection. Under the newly-approved policy, generators will be fully reimbursed for the costs of network upgrades necessary to enable their interconnection with the ITC Midwest system, provided the generators meet certain eligibility requirements.FERC approved the application on August 7, 2008, giving it an effective date of December 20, 2007. That is the date that ITC Midwest acquired the electric transmission system from Alliant Energy's Interstate Power and Light Co. subsidiary.
"We are very pleased with the decision and FERC's continued support of competitive open markets," said Doug Collins, ITC Midwest executive director. "The decision is consistent with FERC's direction to invest in the nation's electric transmission system to improve reliability and encourage open access to the grid. Given our strong wind profile in Minnesota and Iowa, this decision further encourages development of renewable electricity sources in the ITC Midwest service area."
The decision can be found in FERC Docket No. ER08-796-000 and ER08-796-001 and can be accessed at FERC's website at http://www.ferc.gov/ .
About ITC Holdings Corp.
ITC Holdings Corp. invests in the electricity transmission grid to improve electric reliability, improve access to markets, and lower the overall cost of delivered energy. ITC is the largest independent electricity transmission company in the country. Through its subsidiaries, ITCTransmission, Michigan Electric Transmission Company (METC) and ITC Midwest, ITC operates contiguous, regulated, high-voltage transmission systems in Michigan's Lower Peninsula and Iowa and Minnesota. ITC is also focused on new areas where significant transmission system improvements are needed through subsidiaries ITC Grid Development, ITC Great Plains and ITC Panhandle Transmission. For more information, please visit: http://www.itc-holdings.com/. (itc-ITC)
ITC Holdings Corp.
Web site: http://www.itc-holdings.com/http://www.ferc.gov/